Which of the following would not be considered in the fixed charge coverage ratio?
A) sinking fund payments
B) dividend payments
C) lease payments Rent payments
D) rent payments

Question

Quizplus · Accepted Answer

The fixed charge coverage ratio is designed to measure a company's ability to cover its fixed charges, such as interest expenses and lease payments. Dividend payments are not considered fixed charges because they are not obligatory payments like interest or lease payments, and thus, they are not included in the calculation of the fixed charge coverage ratio.

Which of the Following Would Not Be Considered in the Fixed